Rates have climbed for the fifth consecuive week, with the average 15-year fixed-rate climbing above 3% for the first time in more than a year.
Data released by Freddie Mac in its Primary Mortgage Market Survey has shown mortgage rates continuing to rise, with 30-year fixed-rates averaging 3.91%, up 10 basis points from last week.
Freddie Mac vice president and chief economist Frank Nothaft said the rise reflected investor worries over the Fed winding back its bond buying program.
"Continuing market concerns that the Federal Reserve may slow its bond purchases amid a strengthening economy added upward pressure on mortgage rates this week," Nothaft said.
Nothaft also pointed to yesterday's Beige Book release, which revealed strengthening regional economic conditions.
"The Federal Reserve noted that overall economic activity increased at a modest to moderate pace over April and May in all its districts except for Dallas which indicated strong economic growth. In addition, pending home sales rose in April to its fastest pace since April 2010 and May's consumer sentiment was revised upwards to its highest reading since July 2007."